Page 79 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 77
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

In FY2021, MVSB registered a profit before tax of RM9.52
million mainly contributed by the increase in profit contribution
from Musharakah investment as well as a one-off book gain of
RM1.6 million arising from MFRS16 computation due to the
Revenue Assets Under Management early termination of its commercial property lease agreement
RM11.5 million RM70.56 million by MVSB with the lessor company.
40.5% Increase Y-o-Y In line with the VBI concept, MVSB continues to serve
underserved communities through its current investment
partnership with a state government-linked company in
operating Ar-Rahnu branches in Kelantan and Sabah. The
MUAMALAT VENTURE SDN BHD
venture generates sustainable returns to MVSB and allows
Muamalat Venture Sdn Bhd (“MVSB”) is an Islamic venture it to promote fair and transparent products and services to
capital management company which invests in high-growth underserved communities, especially during the prolonged
companies, mezzanine and pre-IPO companies. COVID-19 pandemic challenges, and in supporting Malaysia’s
recovery efforts after the national flood disaster.
Performance Review

During the year, MVSB mainly focused on a Musharakah venture Moving Forward
with a state government-linked company, which accounts for
more than 90% of its Assets Under Management (AUM) of The uncertainties in domestic and global economies
RM70.56 million as at 31 December 2021. The decrease in due to the COVID-19 pandemic could continue to cause
AUM was due to annual capital buyback by the joint venture negative impacts on the performance of companies across
partner in MVSB’s Ar-Rahnu Musharakah investment. various sectors. To address these risks, MVSB will focus
on constant engagement with its investee companies and
manage the negative impacts of an economic slowdown.
MVSB - Assets Under Management (AUM) (RM Million)
Business and economic activities are expected to remain
128.71 76.83 72.65 75.05 71.56 70.56 soft given continuing external headwinds, and this could
lead to investment volatility requiring greater prudence
and vigilance in the face of uncertainties and downside
risks.
Despite the difficult environment, there are opportunities
in MVSB’s investments which can generate stable recurring
income while mitigating the inherent risk. With recovery
expected in 2022, MVSB will continue to focus on our
2017 2018 2019 Dec 2019 Dec 2020 Dec 2021 existing portfolio, while keeping an eye out for viable,
potential investments and opportunities to build a robust
Islamic venture capital portfolio.
Investment Income (RM Million) Profit Before Tax (RM Million)

9.548 8.670 +10.1% 9.517 5.894 +61.5%

2021 2020 Variance (%) 2021 2020 Variance (%)